ExlService (EXLS) - 2025 Q3 - Quarterly Results

Financial Performance - Q3 2025 revenue reached $529.6 million, a 12.2% increase year-over-year from $472.1 million in Q3 2024[1][4] - Q3 2025 diluted EPS (GAAP) was $0.36, up 10.7% from $0.33 in Q3 2024, while adjusted diluted EPS (Non-GAAP) was $0.48, up 10.8% from $0.44 in Q3 2024[1][4] - Full-year 2025 revenue guidance is projected between $2.07 billion and $2.08 billion, reflecting a 13% year-over-year growth[2][9] - Adjusted diluted EPS guidance for 2025 is set between $1.88 and $1.92, representing a 14% to 16% increase over 2024[2][9] - Operating income margin for Q3 2025 was 14.4%, compared to 14.7% in Q3 2024 and 15.8% in Q2 2025[4] - The company reported a gross margin of 38.5% for Q3 2025, compared to 37.8% in Q3 2024[4] - Adjusted operating income for Q3 2025 was $102,623, up from $94,086 in Q3 2024, marking a growth of 9.1%[23] - Adjusted EBITDA for Q3 2025 reached $114,441, compared to $104,436 in Q3 2024, an increase of 9.8%[23] - Adjusted diluted earnings per share for Q3 2025 was $0.48, up from $0.44 in Q3 2024, representing a growth of 9.1%[25] - Net income (GAAP) for Q3 2025 was $58,161, compared to $53,037 in Q3 2024, an increase of 9.9%[23] Client Acquisition and Market Demand - The company won 21 new clients in Q3 2025, indicating strong market demand[9] Product Development and Recognition - EXL launched EXLdata.ai in partnership with Databricks, aimed at addressing enterprise data readiness for AI[9] - EXL was recognized as a Market Leader in the HFS Research Horizon Insurance Services 2025 report, highlighting its expertise in AI-driven operational insights[9] Asset and Liability Management - Total assets increased to $1,733,632, up from $1,618,403, representing a growth of 7.1%[15] - Current assets rose to $891,946, compared to $795,189, reflecting an increase of 12.1%[15] - Total liabilities increased to $781,243 from $688,541, reflecting a rise of 13.4%[15] - Stockholders' equity increased to $952,389, up from $929,862, a growth of 2.5%[15] Currency Exchange Impact - The average exchange rate of the U.S. dollar against the Indian rupee depreciated by 5.3% from Q3 2024 to Q3 2025[20] Sequential Growth - Sequential revenue growth from Q2 2025 to Q3 2025 was 2.9% on a reported basis[4] Operating Income Margin - Adjusted operating income margin for Q3 2025 was 19.4%, slightly down from 19.9% in Q3 2024[23]